Guuhati High Court: Difference in ITC claimed - FORM GSTR-3B and FORM GSTR 2A - Matter requires examination - Revenue not to act on SCN till next hearing date.

The case of Surya Business Pvt Ltd vs State of Assam revolves around a dispute concerning Goods and Services Tax (GST), specifically regarding the Input Tax Credit (ITC).

The petitioner, Surya Business Pvt Ltd, was issued a Show Cause Notice by the tax authorities, demanding the recovery of Rs. 27,25,503. This amount was alleged to be an excess claim of ITC for the fiscal year 2018-2019, in addition to interest and penalties.

In defense, the petitioner referenced two significant precedents: Bharti Airtel Limited and others - 2021-TIOL-251-SC-GST and Suncraft Energy Private Limited - 2023-TIOL-917-HC-KOL-GST.

These cases were cited to challenge the Show Cause Notice, with the petitioner arguing that the ITC was legitimately claimed based on valid tax invoices received from the supplier, alongside the payment of taxes to the same supplier.

The counsel for the respondent, representing revenue authorities, contended that the Show Cause Notice was issued in accordance with the guidelines set out in Circular no. 183/15/2022, dated 27.12.2022, particularly referring to Clause 4.1.1.

The court concluded that the matter required further examination to reach a decision. As a result, the case was scheduled for a subsequent hearing on 22.02.2024.

Until the next hearing, the High Court ordered that the respondents (the revenue authorities) are restrained from acting upon the Show Cause Notice dated 11.01.2024.

This interim order highlights the court's intention to delve deeper into the matter, taking into account the arguments and precedents cited by the petitioner, as well as the legal framework outlined by the respondent's counsel.